Planning for retirement is essential to ensure financial stability in your later years. Investing in either a lump sum or monthly SIPs over the long term can yield substantial returns, thanks to the power of compounding. Let’s explore how a one-time investment of ₹5 lakh can grow into a ₹1.5 crore corpus over 30 years.
After retiring, you’ll need a steady fund to cover living expenses without running out of money during your lifetime. Building a retirement corpus ensures you can meet these needs comfortably.
You can choose from:
Here’s an example:
Increasing the investment duration to 30 years amplifies growth due to compounding:
Investing ₹5 lakh in mutual funds at a 12% annual return:
If you invest ₹5 lakh at age 25, you’ll reach a ₹1.5 crore corpus by 55. Extending the investment to 60 years of age increases the corpus to ₹2.64 crore.
Compounding accelerates growth as returns are reinvested, making time your greatest ally in wealth creation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 15, 2025, 9:43 AM IST
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